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Injury Investigations in Antidumping and the Super-Additivity Effect: A Theoretical Explanation

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  • Poonam Gupta
  • Arvind Panagariya

Abstract

Empirical evidence shows that injury investigations in anti-dumping cases conducted by the United States International Trade Commission, the probability of a positive finding is higher when the number of defendant firms is larger, holding constant their total market share. In this paper we offer a theoretical explanation of this finding. We show that the presence of many exporters exacerbates the free-rider problem, which leads every firm to invest less on defense. Thus for the same market share, injury finding is more likely to be positive for many small sellers than a few large sellers.
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  • Poonam Gupta & Arvind Panagariya, 2006. "Injury Investigations in Antidumping and the Super-Additivity Effect: A Theoretical Explanation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(1), pages 151-164, April.
    • Handle: RePEc:spr:weltar:v:142:y:2006:i:1:p:151-164
    DOI: 10.1007/s10290-006-0060-1
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    Cited by:

    1. Patrice CASSAGNARD, 2009. "Antidumping, Social Quality of Goods and Smear Campaign," Working Papers 10, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Nov 2009.

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